US PR bodies admit accounting errors
Two of the US's biggest public relations associations have admitted to massive errors in their financial reporting, according to a report in trade magazine PR Week.
At its most recent board meeting the International Association of Business Communicators said there were ‘huge errors’ in its financial reporting, which it blamed on an ‘unbelievably sloppy level of accounting practices’.
IABC interim president Lou Williams said a ‘poor unwieldy board’, inappropriate private communication, and lack of financial management and miscalculation of resources were responsible for the body’s poor state.
And the IABC has been joined by the Public Relations Society of America in admitting gross errors in its financial reporting, according PR Week.
According to CEO Kathy Lewton, the PRSA had incorrectly recorded its projected income from its annual convention by over £200,000, and had discovered unpaid bills of £69,000 dating back to 1999.
Lewton said policy problems, faulty software and poor judgement calls were to blame and said the PRSA would release fully audited figures in April after taking a number of corrective measures.